ATO targets rich baby boomers
ONE in three wealthy people who may be dodging tax will get a call or personal visit by the Australian Taxation Office as it moves to ensure the richest Australians and private companies pay their fair share of tax.
The ATO wants to beat its 2013-14 rate of raising $1.1 billion in liabilities from high-wealth individuals (HWIs), and says it will be going after baby boomers who try to avoid paying capital gains tax when they pass their wealth on to their children.
The man at the ATO who says his job is to ensure wealthy Australians pay tax, ATO deputy commissioner Michael Cranston, said the Tax Office had noticed lots of examples of people passing down assets to their children that they then recorded at an artificially inflated price. Then years later, they would sell it and avoid paying CGT by having inflated the value.
Mr Cranston said the ATO estimated about 30 per cent of almost 300,000 HWIs it monitors were assessed as being at "high risk" of being non-compliant.
It puts high-wealth individuals into three categories. This includes 155,000 privately owned groups with turnover of more than $2 million, more than 114,000 people with net wealth of between $5 million and $30 million, and more than 4600 "high-wealth individuals" who control net wealth of $30 million or more.